A pending order is the trader's instruction to a brokerage company to buy or sell financial instruments at a specified level. When the price reaches the level wanted, the execution of the order is done automatically. There are four kinds of pending orders available.
Buy Stop is a pending order to buy at a price above the current one. The trader places a Buy Stop, when he assumes that the price will overcome a certain level and starts to go up.
Sell Stop is a pending order for sell at a lower price than the current one. The trader places Sell Stop, when he counts on a further reduction of the price after overcoming the certain level.
Sell Limit is a pending order to sell at a higher price than the current one. The trader specifies Sell Limit, when he predicts that the price will rise to the certain level, and then starts to go down.
Buy Limit is a pending order to buy at a lower price than the current one. The trader places Buy Limit, when he thinks that the price will increase after it falls to a certain level.